Payment to MSMEs vendors
This query is : Resolved
10 May 2023
Hi,
We are a Sector Skill Council of India and our business is to give training to the candidates under electronics job roles. We don't do it ourselves. There are Assessment Agencies and Training Partners who are affiliated with us and do this work on our behalf.
For a particular training, we receive our payments from the respective govt. dept. and after that we have to pay to our Assessment Agencies after deducting our share. Some of the Assessment Agencies are registered under MSME act.
My concern is can we hold the payment of these MSME until we get the payment for that training because our policy is that we've to release the payment only after getting our payments from the govt. but sometimes we don't get payment on time.
So in that case can we delay payment of MSMEs until we get our payment or we've to pay interest on delayed payment to MSMEs. Please suggest what is the solution in this case?
Regards
We are a Sector Skill Council of India and our business is to give training to the candidates under electronics job roles. We don't do it ourselves. There are Assessment Agencies and Training Partners who are affiliated with us and do this work on our behalf.
For a particular training, we receive our payments from the respective govt. dept. and after that we have to pay to our Assessment Agencies after deducting our share. Some of the Assessment Agencies are registered under MSME act.
My concern is can we hold the payment of these MSME until we get the payment for that training because our policy is that we've to release the payment only after getting our payments from the govt. but sometimes we don't get payment on time.
So in that case can we delay payment of MSMEs until we get our payment or we've to pay interest on delayed payment to MSMEs. Please suggest what is the solution in this case?
Regards
20 August 2023
You can ask your MSME Vendors to raise invoices only after payments are received by you
03 November 2023
But we are booking our sales for that particular service. So, simultaneously we have to book our expenses also.
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